tv Bloomberg Markets Asia Bloomberg August 21, 2017 9:00pm-10:00pm EDT
♪ haidi: time for a new direction from the house of trump. the president is about to address the american people about his strategy in at anistan, speaking military base in arlington, hoping to put the focus back on his policy. it is 9:00 p.m. monday in virginia, 11:00 a.m. here in sydney. i'm haidi lun. this is "bloomberg markets: asia." ♪ haidi: here are the stories making headlines this hour.
plans to craig u.s. shale in a nod to investors. and the seller accepts spread across america. lloyd blankfein wishes it wasn't the only shadow across the country. tweet just the's latest in a series of suggestions that perhaps the investor community is quickly losing patience with the trump administration, and the lack of progress made when it comes to policy reform. his tweet taking federal aim at the president overnight. we also had commentary from ray dalio, the head of bridgewater, the world's largest hedge fund, saying he's quite concerned about levels of risk. ray dalio in the past few weeks said investors should put 10% of their money and save havens like gold and the yen. we are looking at perhaps the opportunity to turn a new page for the president.
he is just about to step out on stage, about to deliver an address to the nation here in arlington, virginia. , hinted at by james mattis over the weekend to announce perhaps the adding of troops to afghanistan. we will listen into what the president has to say. pres. trump: vice president pence, secretary of state tillerson, members of the cabinet general dunford,, deputy secretary shannon, and colonel duggan. thank you to the men and women of fort myer and every member of the united states military at home and abroad. we send our thoughts and prayers to the families of our brave sailors who are injured in loss sea, a tragic collision at
as well as to those conducting the search and recovery efforts. i and here tonight to lay out our path forward in afghanistan and south asia. but before i provide the details of our new strategy, i want to say a few words to the service members here with us tonight. to those watching from their posts, and all americans listening at home. since the founding of our republic, our country has produced a special class of heroes whose selflessness, courage, and resolve is .nmatched in human history american patriots from every generation have given their last breath on the battlefield for our nation and for our freedom.
although their lives were cut their in there deeds -- deeds, they established immortality. we can find the inspiration our country needs to unify, to heal, and to remain one nation, under god. the men and women of our military operate as one team with one shared mission, and one shared sense of purpose. they transcend every line of creed andethnicity, color to serve together and sacrifice together in absolutely perfect cohesion. that is because all servicemembers are brothers and sisters. they are all part of the same
family. it is called the american family . i take the same mouse, fight for the same flag -- they take the fight for the same flag, and live under the same law. they are bound together by mutual trust and selfless devotion to our nation and each other. the soldier understands what we as a nation often forget, that a wound in fig did -- inflicted upon a single member of our undmunity is a wo inflicted upon us all. 11 part of america hurts, we all hurt. when one citizen suffers an injustice, we all suffer together. loyalty to our nation demands loyalty to one another. love for america requires love
for all of its people. when we open our hearts to patriotism, there is no room for prejudice, no place for bigotry, and no tolerance for hate. they young went -- the young men and women we send to fight our wars abroad deserve to return to a country that is not at war with itself at home. we cannot remain a force for peace in the world. at ease with each other. as we send our bravest to defeat enemies overseas, and we will always win, let us find the courage to heal our divisions within. let us make a simple promise to the men and women we ask to fight in our name that when they , they home from battle
will find a country that has renewed the sacred bonds of love and loyalty that unite us together as one. the resilience and skill of our military and allies throughout the world, horrors on the scale of september 11, nobody can ever forget that, on ourt been repeated shores, but we must acknowledge the reality that i will say tonight, that nearly 16 years --er the seller temperature september 11 attacks come after the sacrifice of blood, the american people are weary of war without victory. nowhere is this more evident than with the war in afghanistan. the longest war in american history, 17 years.
i share the american people's frustration. i also share their frustration over a foreign policy that has spent too much time, energy, money, and most importantly lives, trying to rebuild countries in our own image instead of securing our security interests above all other considerations. that is why shortly after my inauguration, i directed secretary of defense matters and my national security team to undertake a comprehensive review of all strategic options in afghanistan in south -- and south asia. my original instinct was to pull out. and historically, i like following my instincts. but all my life, i've heard that decisions are much different
when you sit behind a desk in the oval office. in other words, when you are president of the united states. in great afghanistan detail and from every conceivable angle. after many meetings over many months, we held our final meeting last friday at camp david with my cabinet and generals to complete our strategy. i arrived at three fundamental conclusions about america's core interests in afghanistan. first, our nation must seek an honorable and enduring outcome worthy the of the tremendous sacrifices that have been made, especially the sacrifices of lives. the men and women who serve our nation in combat deserve a plan for victory.
they deserve the tools they need and the trust they have earned to fight and to win. second, the consequences of a rapid exit are both predictable unacceptable. 9/11, the worst terrorist attack in our history, was planned and directed from afghanistan, because that country was ruled that a government that gave comfort and shelter to terrorists. a hasty withdrawal would create a vacuum that terrorists, including isis and al qaeda, which instantly fill, just as happened before september 11. 2011, america hastily and mistakenly withdrew from iraq.
as a result, our hard-won gains slipped back into the hands of terrorist enemies. our soldiers watched as cities they had fought for and bled to liberate and won were occupied by a terrorist group called eisuke's -- isis. the vacuum we left behind gave safe haven for isis to spread, grow, recruit, and launch attacks. we cannot repeat in afghanistan the mistakes our leaders made in iraq. third and finally, i concluded that the security threats we face in afghanistan and in the broader region are immense. today, 20 u.s. designated foreign terrorist organizations are active in afghanistan and pakistan. the highest concentration in any
in the world.re for its part, pakistan often gives safe haven to agents of chaos, violence, and terror. the threat is worse because pakistan and india are two nuclear armed states whose tense relations threatened to spiral into conflict. and that could happen. no one denies that we have inherited a challenging and troubling situation in afghanistan. and south asia. but we do not have the luxury of going back in time and making different or better decisions. when i became president, i was very complexnd hand, but i fully knew what i was getting into. big and intricate problems. one way or another, these problems will be solved.
and in the end, we will win. we must address the reality of the world as it exists right now , the threats we face, and the confronting of all of the , and extremelyay predictable consequences of a hasty withdrawal. we need look no further than last week's file, vicious attack in barcelona to understand that terror groups will stop at nothing to commit the mass murder of innocent men, women, and children. you saw it for yourself. horrible. as i outlined in my speech in saudi arabia three months ago, america and our partners are committed to stripping terrorists of their territory, cutting off their funding, and exposing the false allure of
their evil ideologists. slaughter who innocent people will find no glory in this life or the next. they are nothing but thugs and criminals and predators, and that's right, losers. working alongside our allies, we will break their will, dry up their recruitment, keep them from crossing our borders, and yes, we will defeat them, and we will defeat them handily. in afghanistan and pakistan, america's interests are clear. we must stop the resurgence of that enablean terrorists to threaten and we must stop nuclear materials from getting into the hands of terrorists and be used against us from anywhere in the world. but to prosecute this war, we will learn from history.
as a result of our comprehensive review, american strategy in afghanistan and south asia will change dramatically in the following ways. a core pillar of our new strategy is a shift from a basedased approach to one on conditions. i have said it many times how counterproductive it is for the u.s. to announce in advance the dates we tend to advance our begin military options. not talk about numbers of troops or our plans for further military activities. on the ground, not arbitrary timetables, will guide our strategy from now on. america's enemies must never know our plans or believe they can wait us out. i will not say when we are going to attack, but attack we will.
another fundamental pillar of our new strategy is the integration of all instruments of american power. diplomatic, economic, and military, toward a successful outcome. effectiveter an military effort, perhaps it will be possible to have a political's sentiment that includes elements of the taliban and -- in afghanistan, but nobody knows if for when that will ever happen. america will continue in support for the afghan government, and the afghan military, as they confront the taliban, in the field. ultimately it is up to the people of afghanistan to take ownership of their future, to toern their society, and achieve an everlasting peace. friend, buttner and
we will not dictate to the afghan people how to live our govern their own complex society. we are not nationbuilding again. we are killing terrorists. tiller of our new strategy is to change the approach and how to deal with pakistan. we can no longer be silent about pakistan's safe havens for terrorists organizations, the taliban, and other groups that pose a threat to the region and beyond. has much to gain from partnering with our effort in afghanistan. it has much to lose by continuing to harbor criminals and terrorists. in the past, pakistan has been a valued partner. our militaries have worked together against common enemies. -- pakistan of people
pakistani people have suffered greatly from terrorism and extremism. we recognize those contributions and sacrifices. but pakistan has also shelter the same organizations that tried every single day to kill our people. we have been paying pakistan billions and billions of dollars. the same tim they are housing the terrorists we are fighting. change, will have to and that will change immediately. no partnership can surprise -- ofvived a harboring terrorists and targeting u.s. military. it is time for pakistan to demonstrate its commitment to .ivilization, order, and peace another critical part of the south asia strategy for america is to further develop its strategic partnership with india, the world's largest
democracy and a key security and economic partner of the u.s. we appreciate india's important contributions to stability in afghanistan, but india makes billions of dollars in trade with the united states, and we want them to help us more with afghanistan, especially in the area of economic assistance. we are committed to pursuing our shared objectives for peace and security in south asia. and the broderick indo pacific region. finally, my administration will ensure that you, the brave peoplers of the american will have the necessary tools of rules and engagement to make this strategy work, and work effectively, and were quickly. i already lifted the restrictions the previous administration based on our war fighters that prevented the
secretary of defense and commanders in the field from fully and swiftly waging battle against the enemy. micromanagement from washington dc does not win battles. the are drawing upon judgment and expertise of water -- wartime commanders and frontline soldiers, acting in real time with real authority and with a clear mission to defeat the enemy. that's why we will also expand authority for american armed forces to target the terrorist and criminal networks that swow violence throughout afghanistan. they need to know that no place is beyond the reach of american might and american arms. retribution will be fast and .aserful
we lift restrictions and expand authorities in the field, we are already seeing dramatic results defeatcampaign to isis, including the liberation .f mosul since my inauguration, we have achieved record-breaking success regard. we will also maximize sanctions and other financial and law enforcement actions against these networks to eliminate their ability to export terror. america, commits its warriors to battle we must ensure they have, every weapon to apply swift, decisive, and overwhelming force. our troops will fight to win. we will fight to win. from now on, victory will have a clear definition. enemies, our obliterating isis, crushing al qaeda, preventing the taliban from taking over afghanistan, mass terrorg
attacks across america before they emerge. we will ask nato allies and global partners to support our strategy with additional troop and funding increases. we are confident they will. i have made clear that our allies and partners much contribute much more money to our collective defense. and they have done so. in this struggle, the heaviest burden will continue to be borne by the good people of afghanistan and their courageous to armed forces hear as the prime minister of afghanistan has promised, we will participate in economic development to help to freight the cost of this war to us. afghanistan is fighting to defend their country against the
same enemies who threaten us. the stronger the afghan security forces become, the less we will have to do. afghans will that and build their own nation and defined their own future. we want them to succeed. but we will no longer use american military might to construct democracies in faraway lands or try to rebuild other countries in our own image. those days are now over. instead, we will work with allies and partners to protect shared interests. we are not asking others to change their way of life, but to pursue common goals that allow our children to live better and safer lives. this principled really will guide our decisions moving forward. military power alone will not bring peace to afghanistan or stop the terrorist threat arising in that country, but strategically applied force aims
to create the conditions for a political process to achieve a lasting peace. america will work with the afghan government as long as we see determination and progress. however, our commitment is not unlimited. and our support is not a blank check. afghanistannt of must carry their share of the military, political, and economic burden. the american people expect to see real reforms, real progress, and real results. unlimited --is not unlimited. not we will keep our eyes wide open. promises, iy my will remain steadfast in protecting american lives and interests. in this effort, we will make
common cost with any nation that chooses to fight and stand alongside us against this global threat. heed.ists, take america will never let up until you are dealt a lasting defeat. under my administration, many billions of dollars more is being spent on our military. this includes vast amounts being split -- spent on our nuclear arsenal and missile defense. in every generation, we have faced down evil and we have always prevailed. we prevailed because we know who we are and what we are fighting for. arefar from where we gathered tonight, hundreds of thousands of america's greatest patriots lay in eternal rest at arlington national cemetery. there is more courage, sacrifice, and love in those
howley grounds then in any other spot on the face of fear. many of those who have fought and died in afghanistan and listed in the months after september 11th, 2001. they volunteered for a simple reason -- they loved america and were determined to protect her. now, we must secure the cause for which they gave their lives. we must unite to defend america from its enemies abroad. we must restore the bonds of loyalty among our citizens at ane, and we must achieve honorable and enduring outcome worthy of the enormous price that so many have paid. and in much to come, all of them will honor the sacrifice of every fallen hero, lovedfamily who lost a
one, and every wounded warrior who shed their blood in defense of our great nation. with our resolve, we will ensure youryour service and families will bring about the defeat of our enemies and the arrival of peace. we will push onward to victory with power in our hearts, courage in our souls, and everlasting pride in each and every one of you. bless our may god military, and may god bless the united states of america. thank you very much. [applause] ♪
haidi: u.s. president trump wrapping up his speech, delivering a new chapter on the nowtegy in afghanistan, almost 16 years after the u.s. first entered the country. the thirdtrump is now u.s. president to struggle to come up with an exit from the longest, and by some measures, it's least popular, and that cost over 2000 lives. from theng commentary
president, essentially offering an open-ended commitment, and very much trying to tell it the line between some of the factions of his supporters, largely headed by now ousted advisor steve bannon. let's go to stephen engle who has been monitoring this speech for us. it? did you make of it is in some ways quite a turnaround in terms of his position on this war. this is pretty much the first major speech he has given following the exit of steve bannon, who was, of course, in opposition of added troops and afghanistan. defense as though his secretary, rex tillerson, and h.r. mcmaster all support a greater influence are greater troop numbers in afghanistan. they seem to have won out. it is interesting.
donald trump did not necessarily go off script from what i could tell. he stuck to the script and made pointed remarks about how he sees america's role in south asia and afghanistan. speechted the interestingly with comments referring to the division at home. he was quoted as saying "we cannot be a force for peace in the world unless we are at peace at home." he made a number of different points about the war in committing not specifically to a number of troops to go into afghanistan in addition, somewhere between 3000 and 5000 rumor. he says they will not give targets are timelines, because it gave the enemy advance notice. he did say more u.s. and allied troops will be committed and that allies will have to take a significant role as well as u.s.
soldiers. haidi: a reminder that nato, and allies have to pay more. one interesting and perhaps aspirational part of the speech was when he spoke about the role of pakistan and the relationship with india. stephen: absolutely. he says pakistan has been an ally in the past, and a safe haven for a number of different terrorist cells. he said "pakistan has much to " if they continue to harbor terrorist cells. he also did a little bit of an olive branch and needling of india, saying india has been a great ally, but they must also in helpinger role peace in afghanistan. it is curious, shaming
pakistan and touting his friendship with india. a lot star unpack. much for that. stephen engle monitoring the speech, very much an open-ended u.s. commitment. certainly looking like as much as 4000 more troops will be added. let's take a look at how the markets are taking this. -- just a couple minutes into the shanghai session. sophie: it is a risk assessment time. we had bridgwater's ray dalio saying he took risk off the table given concerns about policy relative, but in that speech by trump, focusing on the domestic picture, it looks like that is providing some optimism.
take a look at u.s. futures. the s&p 500 looks higher when wall street gets underway on tuesday. take a look at the markets in asia. withn stocks are advancing hong kong and chinese markets and joining the upside, the hang seng getting 8/10 of a percent. as trump was talking, we did see the dollar-yen climb further 9 level.e 10 losses are building for bullying -- it looks like riskier assets are back in favor, at least for the moment. we did have the pboc set stronger since september. the one, both onshore and offshore rate picking up in the wake of that. rupiah, stronger for a third
straight day ahead of indian ages -- indonesia's policy decision. we do see the central bank holding on rates. and last word in the commodities complex, a mixed picture. copper is still up. iron ore also climbing in singapore. a last look at what's going on with the dollar. just to showyou how it was trading as trump was speaking, we are seeing a rise from the levels overnight. it fell against most g10 peers overnight. is ahead of the jackson hole gathering later this week. have great wall motor shares being suspended from trade in shanghai and hong kong, pending clarification of reports regarding an interest in fiat
chrysler. the big interest when it comes markets following trump's speech. haidi: certainly looks like we had a bit of a halt temporarily to the slide. let's get more assessments in the aftermath of the president's address on afghanistan. we go to singapore. steve davis is the cbo and founder of javelin wealth management. great to have you. it's a time to assess risk.we had comments from ray dalio overnight. in a way, the aunt military strategy and the view on what the u.s. does in afghanistan, i feel like that speech was also a chance for the president to press reset and rebuild credibility. yes, i think that is certainly one of the big political objectives of that speech to try and diverse a little bit of attention from some of the noise that is being
created over the last week or so. it is from atly, market perspective obviously that, speech in and of itself doesn't really have much of an effect. we are looking to see whether we get noise out of jackson hole later this week, and whether another is justification in being more risk-averse. thinkur perspective, we that we would like to see more delivery in terms of the core economic policies that the trump administration had promised but have so far failed to deliver on. i'm quite curious, because you said more delivery. arguably to hasn't been that much done at all.a lot of it is with constant distractions going on with politics as opposed to policy. the president, by a lot of accounts, is in a pretty precarious situation after events over the past week. does he have the backing of the
republican establishment to get policy done? .> that's a good question certainly at the moment it seems as though that is not guaranteed. it may be one of the reasons why you will see perhaps a private ivot and the- p remaining months of the year in things the republican party and the president agree on, like tax reform and regulatory reform. that would be deemed to be easier than other things such as health care. having said that, the legislative calendar is pretty packed and there is some doubt as to whether or not they've got enough time to get things done before the end of the year, given the amount of discussion that will be needed to agree on anything. is the one youly would like to see done and most market participants would like to see done. >> yes, indeed.
if we look back at post-november a lot ofear, expectation was built into markets on the basis that we would get significant changes to the tax environment which would encourage companies to bring back huge cash balances they currently have sitting overseas, but at the moment it is not worthwhile for them to bring back on shore. subject of to be the a positive amendment, that would be extremely positive not only also inu.s. dollar and companies to invest domestically. there is still a question as to whether it can be done and under what circumstances. the administration has not been great in terms of delivery and negotiation. if you are looking at past track record, you would have to be at the very most, very cautiously
optimistic, but with huge questions. haidi: what i thought was interesting, even with the comments from steve mnuchin overnight staying -- saying tax reform is still a focus, that something will get done about , we didn't seeg a reaction when it comes to the u.s. session overnight. his there a sense, and perhaps comments from ray dalio accentuates this, a sense that the barrier is getting high for the next leg up if we are getting on for equities? >> i think so. i also think we have been playing an expectation game for the last year or so. now it's a question of ok, so the expectation game has not worked, because we have not had any delivery. now the patience of the markets in general said, ok, show us the we'll make an
decision as to whether or not it makes sense. up until now, it has been hot air. that's move beyond washington. if we can. back on central banks, we are all waiting for jackson hole. we are expecting mario draghi to be extraordinarily cautious with wording. could we get a hawkish surprise from janet yellen given that she's speaking about financial stability? >> that's true. if you look at the way the dollar has been performing this week, it is expecting nothing new. from the fed and the ecb is a tricky balancing act. low, and remains very surprisingly so. as you get an interview with stanley fischer and "the financial times," they are
surprised that how low inflation remained despite all the stimulus and liquidity injected into the global financial system. traditional economic models are not working in the same way that people have come to expect that they should do. i think you will find much more of the same, that the central banks will be giving us a little bit more indication as to how they propose to manage the wind down of their liquidity positions. once again, it will be pretty much the same, i.e., slow and steady, no big surprises, committing to gradually reducing the support we give, but still watching the data. haidi: always a pleasure. steve davies from javelin wealth management. let's take a look at one of the top stories. bhp rising strongly today, a surge in profit that was missed but also offering a not to
activist investors by flagging plans to quit the u.s. shale industry. let's bring in the ceo andrew mackenzie to talk to us. great to have you with us. you have indicated a range of options to get out of u.s. shale. what is your preferred strategy to make a clean exit? now, our prepared strategy is a small number of trade sales, but we are keeping other options they are so that we can proceed with a reasonable amount of pace. for now, we think a trade sale would work best. haidi: how quickly are you hoping to complete an exit? >> i think it is too hard to say. we have to be patient. we know what our businesses are worth. we will continue to add to their value through technology and modest investment. we don't wantand,
to lack urgency. that's why we have other options in the wings if trade sales look too complicated and difficult to execute in a reasonable time. haidi: it's interesting, because monday we heard from the french energy giant who agreed to buy oil and gas assets. one of the things they set is the u.s. shale wasn't at the top of their wish list, because it is too expensive. with that in mind, do you agree about it being expensive, and does it concern you about finding available and interested buyers? >> we actually have sold some parts of our position over the last two years. this isn't something that happened in a sudden way. half of the remaining half was already on the block. we have put the whole lot on the block now.
a lot of trades happened. what generally happens on the trade sale is that people get proper engineers involved. they do proper assessments and to go for what it's worth. it is often quite difficult to they arerades, because dealing with different types of acreage. they have different prospect of the. -- different prospectivity. haidi: does the decision to go for a total exit, was the impetus the pressure from these activist investors? >> no. we have been working towards this. two years ago, we made it clear to most of our investors that when we looked around the world, we saw very limited opportunities to expand our business in oil. we felt that the margins in gas,
shale gas, would not be attractive to us relative to the in bhp.sinesses we started pivoting back towards conventional oil and gas. that meant that the same time we were cutting capital in shale, selling the acreage in the way i described, cutting the number of wealth, we significantly increased conventional oil. beenrt of this, i have able to announce successes. we have been the first company back into conventional oil, for a foreign company on -- in mexico. we have had exciting drilling results in the u.s. gulf of mexico. fairly or had good results in trinidad, with a lot more prospects. we have been moving in this direction for some time. it is hard to not see it that way, given the timing,
pressure coming from the likes of elliott, and now this yousion in the caution described. is it right to read these decisions, at the very least, you feel like you have them off your back for a little while? ande have many shareholders we talked to all those shareholders all the time. theecision on port -- --ision is a realization there was a shareholder who i think misrepresented our decision. it is an option. we deal with options to invest a lot more than we actually choose to exercise, because it is an uncertain world. while we hold them as options, we continue to improve potential returns, so they get through
disciplined capital process, or we sell them down, or in some cases we abandon and regroup entirely. if you look at the history of bhp, and there is a slight an hour presentation, it shows we have done that many times. we have to projects that we approved in the course of the weancial we supported, which waited five years to get the capsule down to see the market ready. have two products completed this year that started about four or five years ago, but after a similar amount of delay. over the last few years we have had several projects where we have tried to sell them down and in some case exit completely, often from a more value than what we invested in them. this was only ever an option. we were being transparent with shareholders about when things and we arensidered, being transparent again saying we don't think the market will be ready or the technology will be ready for at least another two or three years. we tell people that.
in the meantime, we do all the things with our other projects to make them investable or not. but i repeat, if it doesn't meet our disciplined capital framework, they don't go ahead. we have been extremely capital.ed in during my time as ceo, the kind of capital we need to thrive as a company has dropped from numbers that used to be much higher for something we announced today that we can survive for the next three years on a capital budget. less than $8 billion a year. haidi: is it likely you proceed -- proceed some of the changes demanded by dissatisfied shareholders, like further strategic reforms, are you looking at an overhaul of the board? >> i'm not the chairman of the board. and the ceo of the company. that is the question, with a split role in an australian
company, you have to direct towards the chairman. haidi: let me move on to the results. very impressive, clearly, even though it was a market myth.the profit rebound ss.market mi do stability or a big question mark? at the earnings line. that is often a number that is difficult to get right. we had fun or is like best factors like our provisions were closing, and the foreign exchange on the debt. it was a market beat on the things that really mattered. hash -- tremendous free cash flow almost three and a half times of $12.6 billion. even the earnings were an $1.2 billion, to
more than $6 billion. we are looking at five years where we take 40% out of costs to deliver the kind of result today, which means that the majority of the extra cash flow from higher prices can be transferred straight through to shareholders in the form of an enhanced dividend. it is easy to perform a they tell him. that seems to be fading, particularly out of china. what are your forecasts when it comes to china? i think it is unfair to say we are performing with a tailwind. when you take 40% out of your slow and you are able to tailwind, even though
there's a lot of things that come off it like higher supply , i thinkeign exchange we have performed way better than what the tailwind would say. to your question on china, i would say our outlook for this year is probably a bit more it was a fewan months back. we see the reforms in china playing well in terms of stimulating more demand, but also removing high cost supply that creates an opportunity for us with high quality products in the market. although some prices are a little bit higher than you think it would be given the marginal producers,her cost we don't see them falling back anything like some of the lows we have seen more recently. haidi: andrew mackenzie, thank you so much for spending your time with us, the bhp ceo talking through the earnings,
haidi: it is a busy week of earnings for chinese property developers. china overseas land, results from gains. let's go over to senior asia real estate analyst hat trick long in hong kong can we expect. sustained home sales of the second half, given that we have a continued sister -- persistent tightening measures across cities? cities,nk for the major the first half is resilient. it makes sense for us to see in the second half, we could see the momentum going down a little bit. citieslly for lower tier
doing well in the first half. having said that, and think in terms of the land resources they them -- weome of will see more dynamics happening in the second half going forward. haidi: what are your expectations when it comes to the appetite for land purchases in the second half, and are we seeing more consolidation in the industry? reporter: i think so. if you look at the market like equities in the public portfolio, which is doing well. the lynn market is tough. daschle land market is tough. the land market is tough. , they havecond half
sle reform. .hey can buy more land [indiscernible] overall, we see more market consolidation. take me through the china overseas land earnings that came out yesterday. reporter: i think the margin is doing really well. whichchieved 30% margins, is i think within the guidance. the marginslopers, are also going up further.
♪ announcer: from our studios in new york city, this is "charlie rose." charlie: welcome to the program. we begin with two big stories, the departure of steve bannon from the white house and the terrorist attack in barcelona. we start with a look at "the cbs evening news" report. >> the white house press secretary sarah sanders said john kelly and steve bannon mutually agreed on his exit. sources tell us the president had grown frustrated by bannon's rising profile in recent -- and recent publications describing him as the mastermind behind mr. trump's campaign.